Jay Anand Thakkar of Anand Rathi said the Nifty indicates a bearish undertone in the near term

The Sensex and Nifty corrected sharply from intraday high levels during Friday's session as profit booking emerged in auto, IT and oil & gas shares. Jay Anand Thakkar, CMT, assistant vice president-equity research at Anand Rathi, told NDTV Profit that with increase in volatility, the Nifty formed lower-top lower-bottom formation on hourly charts which indicates a bearish undertone in the near term. On the downside, Nifty has support around 9,370.

Avoid CESC: The recent bounce should not be used as a buying opportunity.

ITC: The stock faces resistance around Rs 300 and if it closes above Rs 300 it can go up to Rs 330.

State Bank of India: The stock can go up to Rs 325 and it has downside support at Rs 300. However, the risk-reward is not favourable for going long.

Hindustan Unilever: The stock has staged a good move from Rs 750 to 1,000 and there can be some profit-booking and dips should be used as buying opportunity for target of Rs 1,300-1,400.

Godrej Consumer Products: The stock has done quite well but at current levels most of the upside is over and stock can consolidate from hereon.